Bikaji Foods Retail, one of the leading snacks brands, has acquired a 53 per cent stake in Hazelnut Factory Food Products, a cafe-cum-Artisanal sweets brand based in Lucknow, for ₹131 crore.
The investment will be made in tranches and is expected to be completed in the next two years. Through this acquisition, Bikaji aims to set up a House of Brands to cater to unique customer tastes and preferences and establish Bikaji as a key player in the Quick-Service Restaurant domain.
The acquisition will enable Bikaji to expand its product portfolio into the premium bakery and patisserie segment while also incorporating various cafe offerings to meet evolving consumer preferences, the company said.
The Hazelnut Factory has six stores in Lucknow and one store each in Kanpur and Delhi. The brand offers specialty coffee, Handmade sweets, a bakery, and patisserie, along with a range of cafe menu items.
Deepak Agarwal, MD of Bikaji Foods International, said the acquisition marks a significant step in Bikaji’s journey to expand beyond traditional ethnic snacks and enter the retail QSR, premium artisanal sweets, and bakery segments.
By integrating THF’s premium offerings and Bikaji’s manufacturing capabilities, the company aims to cater to unique customer tastes and preferences, establishing Bikaji as a key player in the QSR space, he added.
Ankit Sahni, Founder of The Hazelnut Factory, said the deal will accelerate growth. With innovative culinary offerings, Bikaji’s strong distribution network, and operational excellence, it will also enhance growth.
The acquisition comes when the QSR segment is witnessing rapid growth and an increased store presence in tier-II and -III cities and smaller towns, fuelled by increasing urbanisation, a growing young population, rising travel and tourism and expanding internet penetration.
Additionally, the emergence of food aggregators and the trend of increased weekend socialisation are driving demand for convenient dining options, said the company.